GBP/CAD 1H Chart: Channel Down
- The British Pound is losing value against the Canadian Dollar in a two day long descending channel.
- The pattern was shaped by a reaction on release of information on the UK CPI and Average Earnings Index.
- At the moment, the currency pair struggles to pass through the support level set up by the weekly S3 at 1.6268.
- Generally, the rate is expected make a rebound and surge to the top for some short period of time.
- Firstly, because in the end of the previous trading session the pair made a second fully-fledged rebound from the bottom trend-line of the channel.
- Secondly, because a number of technical indicators point out that the currency rate is oversold.
- However, there is a need to take into account that release of data on the UK Retail Sales at 8:30 GMT, depending on the result, will either help the Pound to reach the pattern’s upper boundary for the third time, or it will accelerate the fall towards the monthly S1 at 1.6187.
